SIR JOSEPH WARD MOVES FOR CHEAPER RATES.

Wanganui Chronicle, Volume L, Issue 12765, 17 June 1911, Page 5

SIR JOSEPH WARD MOVES FOR CHEAPER RATES.

RESOLUTION ADOPTED

PROPOSED NATIONALISATION OF

ATLANTIC CABLE

Received June 16, 9.5 p.m

LONDON, June 16

Sir J. G. Ward, in moving a motion in favour of the reduction of cable rates, said much had been accomplished, but the cheapening had not gone far enough. Postal experience showed that the reduction of charges to a point securing to the public the freer use of services produced more profitable working. There was a feeling oversea that the present rates were due to a "ring" in the cable jvorld. He hoped the Conference would effect an improvement in the direction of the more general uso of cables.

The Hon. Herbert Samuel sympathised with and supported the resolution. He said that since the last Conference Tress rates had been reduced, tut he agreed that the progress was not adequate. Stops were being takqn +o secure cheapening in several directions. Firstly he hoped-for a 50 per cent, reduction on deferred cables; secondly, for a further reduction in the Press rate ; thirdly,' that the Government intended to insert a clause in the new landing licenses giving control over the rates providing security 10 companies' against the abuse of that power sby an appeal, to the Railway and Canal Commission; fourthly, in developing wireless telegraphy, which 'would have some effect on the cable rates. He assured the Conference that the passing of the resolution would be followed, by effective achievement. , : .

Sir Wilfrid Laurier declared that all the trouble existing at present was duo to the Atlantic cables. The impression yi Canada—almost amounting to a conviction was that a combine existed. The Hon. Mr Samuel's suggestion would deal with the combination. .

Mr Fisher said that increased facilities and reduced rates appealed principally to Australia and New Zealand, because they wero dependent on the cables for European and American information. He asked whether it was feasible to grant c. law rate over the Pacific cable for new;s cabled from Australia to Montreal, whence it could bo posted to Britain?

The' Hon. Mr Pearce asked whether the Postmaster-General had any information with regard to the refusal of the Treasury's sanction for the construction of a new cable from New Zealand to Australia by the Pacific Cftblo Board, on the ground that it would interfere with the development of wireless telegraphy.

Mr Samuel agreed to inform the Ex-

chequer that thore was. a strong desire in Australia and New Zealand to have th:-. Cable Board authorised, so far as Britain's consent was concerned, to lay the cable

Mr Asquith also promised consideration, j.nd the resolution was then adopted.

Mr Pearce moved for the nationalisation of the Atlantic cable to Australia He believed this was the only way to get a beneficial result. He outlined an All-Iled Cable scheme, including an Atlantic cable and a Canadian land line. The former would cost £480,000, and {.ho land lines £120,000. He estir.iated the working and maintenance of the cable ab £21,500 and the land lino £32,000, with a set off of certain existing expenses amounting to £22.----OCO. It was estimated that the Board would have an immediate revenue of £3G,00D, in addition to new business. The All-Rod ihie was feasible, and was not likely to require special financial assistance from the Governments.

Sir Wilfrid Laurier, after Mr Samuel's statement in connection with the previous resolution, preferred to reserve his judgment on the present proposal. Sir Joseph Ward was strongly of opinion that nationalisation was the right course. Mr Samuel's proposals were important, but the rates could only bo placed on a satisfactory basis through Government ownership. Nationalising -vvas of greater importance from the Imperial view-point than concessions in the rates.

Sir Joseph "Ward, continuing, said that if they could arrange for taking over private cables on reasonable terms >fc would I>e the finest thing ever done fcr the Empire, and equally good for con.rjTiereJ.al transactions. If the companies were unwilling to sell at market voliu the Governments o? the Empire ceild lay a cable of its own. Even if the cost was half a million, it would produce a substantial result. Referring to the proposed second New Zea-land-Australian oabl©, he declared its stoppage by the Treasury was regret-t-i,Me.

The South African and New Foundland delegates expressed themselves

CABLES.

satisfied with- Mr Samuel's proposals, but did not favour nationalisation at piesent.

Mr Samue! stated that Mr Pearce's proposal would involve ht^lf a million. Given the" Atlantic cable>: and the full •capacity of that cable, he questioned vhether the-deficiency would be /made up by increased business. If business , were facreased by ' a large reduction in. the rates, the load, would be made up but the revenue would not be increased. Tfiere was little prospect of a Statfr-owned cable attracting business in the United States and Canada, bec.aise tlie land lines there (were conti oiled by companies associated with the present cables. According to the dratt report the. proposed cable would involve an expenditure of over £50,000 ag&inst an estimated revenue of £20,----000 annually. Tho1 Governments concerned were asked to undertake that loss, on the ground of the efficiency cf service. Although the present system was unsatisfactory, it was worked with speed and accuracy. There was mere force in , tho argument that a cable should be laid in order to secure cheaper rates, though the Government would not lie instilled in undertaking tho expenditure involved. He suggested an alternative resolution that in the event of considerable reductions in the trans-Atlantic rates . remaining unaffected in the near future, the desirability of laying a State-owned cable bojween < England and Canada be considered by the subsidiary Conference. The other,- resolutions having been withdrawn, Mi*' Samuel's motion was adopted. . ; :